Several of the New Year's resolutions posts that I've done have suggested that you resolve to review your insurance costs in the new year. For examples, see these posts:
- Seven Steps to Start 2006 on the Right Financial Foot
- Ten Tips for a Prosperous 2006 -- and Beyond
- Financial Resolutions
- Resolutions for 2006
And I even have my own insurance-related resolution. As such, I thought this piece from USA Today titled New Year is Perfect Time to Check Your Insurance Coverage was a perfect one to share with you. Here's the introduction:
As you make your plans for 2006, take a moment to think about all the things that could go wrong in the next 12 months. Fire. Theft. Untimely death. Once you've completed this gloomy exercise, review your insurance policies. There's a good chance that you're not adequately prepared for misfortune.
A recent survey found that millions of Americans are underinsured in several critical areas. But the study also found that many of them are paying for coverage they don't need. The survey was conducted by Trusted Choice, a group of insurance agencies and financial firms.
Ok, now that you're scared to death (that you don't have enough coverage) and mad as heck (that you've been over-paying), here's a list of places where USA Today says you may be underinsured:
- Homeowner's insurance.
- Coverage for valuables.
- Life insurance.
Here's where you're probably over-paying:
- Update your policy if a young driver moves out.
- Skip baggage and flight insurance.
My thoughts:
1. I keep a pretty close eye on my house insurance and communicate annually with my agent. It's a big asset and I want to make sure it's protected.
2. As far as coverage goes for valuables, let me say two words: engagement rings. If yours is worth a ton, be sure it's covered.
3. I updated my life insurance a few times over the past several years. kept the same rate but got longer terms -- despite the fact that I was older than when I had previous policy.
4. There are lots of other ways to save on insurance costs. See these posts for details:
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